Yen Binh Industrial Park - Thai Nguyen

I. Overview of Yen Binh Industrial Park – Thai Nguyen:

The Thai Nguyen Provincial People’s Committee established Yen Binh Industrial Park through Decision No. 1856/QD-UBND dated August 22, 2014. The industrial park spans a total area of 693 hectares, with 400 hectares dedicated to industrial land and rental factories, divided into two phases: Phase 1 comprises 336 hectares and Phase 2 covers 64 hectares.

Yen Binh Industrial Park is owned and developed by Yen Binh Investment and Development Joint Stock Company. The total investment for the park is over 3,820 billion VND, located in Pho Yen Town and Phu Binh District, Thai Nguyen Province.

Time to form stages:

• According to Official Letter No. 1645/TTg-KTN dated October 15, 2012, by the Prime Minister, the Thai Nguyen Provincial Industrial Parks’ planning until 2020 included the approval of Yen Binh Industrial Park (Phase 1) with a planned area of 336 hectares.
• According to Official Letter No. 886/TTg-KTN by the Prime Minister, the development plan of Thai Nguyen Provincial Industrial Parks approved the inclusion of Yen Binh Industrial Park’s Phase 2, which covers an area of 64 hectares, on June 12, 2014. After the adjustment, the total planned area of Yen Binh Industrial Park is 400 hectares.

Yen Binh Industrial Park is highly regarded for its landscape and focuses on green industrial development. It features greenery, a cool reservoir, and an amusement park. The investor has also constructed residential areas for workers, with a capacity of approximately 20,000 people on an area of 16 hectares.

As of the present time, the industrial park has attracted 30 large enterprises to invest in production development. Among them, 12 domestic enterprises have a total registered investment capital of over 4,400 billion VND, and 18 foreign-invested enterprises have a total registered investment capital of over 7.92 billion USD, constituting over 75% of the province’s total registered FDI capital. This has contributed to the rapid increase in the economic value of Thai Nguyen.

II. Geographical Location of Yen Binh Industrial Park – Thai Nguyen:

Yen Binh Industrial Park is located adjacent to the Hanoi – Thai Nguyen expressway and directly connected to the Yen Binh interchange, making it extremely convenient in terms of transportation:

• It is centrally located and conveniently connected to the centers of five major cities in the north within a distance of less than 30km, including Hanoi, Thai Nguyen, Bac Ninh, Bac Giang, and Vinh Yen.
• It has convenient connections to National Highway 18, National Highway 1, and National Highway 5.
• It is 32km away from Noi Bai International Airport.
• It is 133km away from Hai Phong Port and 13km away from Da Phuc Port.
• It is 2km away from Pho Yen Station and 9km away from Luong Son Station.

III. Infrastructure of the Industrial Park:

Internal transportation:

The transportation system occupies 13.3% of the total area of the industrial park, with a main road width of 47m and a branch road width of 21.5m.

Power system:

• Electricity is supplied from three 3x63MA – 110/22kV substations located outside the industrial park.
• The power source is taken from two separate sources, ensuring a continuous power supply in all circumstances.

Public lighting system:

The street lighting network is designed separately with a power supply system and is arranged along the transportation routes.

Water system:

Water is supplied from the Yen Binh Water Plant with a capacity of 150,000m3/day and night, designed and constructed with Japanese technology.

Wastewater and rainwater drainage system:

• Rainwater is collected through direct collection points on both sides of the road, with a distance of 35-40m/point.
• The drainage system utilizes round culverts ranging from D500 to D1500.

Waste management:

• The investor will enter into service contracts with professional waste management units.
• Currently, it is managed by the provincial environmental sanitation plant in Thai Nguyen.

Wastewater treatment:

There is a centralized wastewater treatment station with a capacity of 80,000m3/day and night, designed and constructed with Japanese technology.

Communication system:

Investors have invested in and built the communication system within the industrial park using modern cable systems and equipment that adhere to international standards, ensuring high-speed connectivity.

IV. Key Investment Attraction Industries in Yen Binh Industrial Park – Thai Nguyen:

Yen Binh Industrial Park aims to attract foreign investors in industries such as:

• Manufacturing metal and plastic components for mobile phones and other electronic devices.
• Production of mobile phones, tablets, digital cameras, and phone components.
• Electronic component manufacturing.
• Automation equipment manufacturing.
•  Processing and assembly of electronic components and phone parts.
• Semiconductor fabrication and LCD equipment manufacturing.
• Mobile phone and mobile device assembly.

V. Land Rental Costs in Yen Binh Industrial Park:

• Infrastructure usage fee: $100/m2 for the entire lease term, the rate may vary depending on the location and size of the rented plot.
• Infrastructure management and maintenance fee: $0.45/m2/year.
• Land rental fee: $15/m2/50 years (one-time payment for a 50-year lease).
• Electricity tariff: Applied based on EVN’s electricity tariff (approximately $1/kWh).
• Clean water supply price: $0.53/m3. The rate may be subject to the decision of the Thai Nguyen Provincial People’s Committee.
• Wastewater treatment fee: $0.51/m3, calculated based on 80% of the volume of clean water used.
• Other costs: Applied based on the rates set by the service providers.

VI. Labor Source in the Industrial Park:

The entire province has 45 vocational education institutions participating in vocational education activities, including:

• 10 colleges.
• 8 secondary vocational schools.
• 15 vocational education centers.
• The remaining units and enterprises participate in vocational education activities.

Thai Nguyen province has a population of 1.2 million people, with 600-650 thousand people of working age.

By providing highly skilled labor through training, it ensures a high-quality labor supply for projects operating in the area, making it the third largest provider in the country. In 2020, the province recruited and trained 21,500 workers, including 500 workers with college-level education and 1,200 workers with secondary vocational education.

Yen Binh Industrial Park is located between the two largest education and training centers in the country (Hanoi and Thai Nguyen), providing a highly skilled and trained labor force.

Labor costs:

• Yen Binh Industrial Park is located in Pho Yen City, Thai Nguyen Province, in Zone II.
• The current minimum wage in Zone II is 3,920,000 VND/month.

VII. Investment Incentives in the Industrial Park:

• Corporate income tax incentives: Enjoy a preferential tax rate of 17% for the first 10 years. Specifically, 100% exemption from corporate income tax for the first 2 years and a 50% reduction in the tax amount for the following 4 years.
• Import tax incentives: Exemption from import tax for goods on the list of tax incentives imported to establish fixed assets for enterprises.
• Support from the industrial park’s investor: Investors implementing projects in Yen Binh Industrial Park receive free support from the investor in investment licensing procedures and business establishment.

FB: https://www.facebook.com/TTTFICgroup